US central bank chief says he will tackle higher inflation

Federal Reserve Chairman Jerome Powell will reiterate his pledge to prevent entrenched inflation, in testimony released before his Senate nomination hearing on Tuesday. 

Fast facts

• “We will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched,” he said in a statement prepared for delivery.

• In November, U.S. consumer prices rose by 6.8% compared to the same period in 2020, in its biggest spike since 1982.

• Powell is due to start his second four-year term as Federal Reserve chair in February.

• Since the Covid-19 outbreak in 2020, investors have turned to Bitcoin as a hedge against inflation, touting its 21 million maximum BTC supply as a safe haven.

• But in recent weeks, Bitcoin has underperformed, failing to break through the highly anticipated US$100,000 level to close out 2021, and even dipping below the US$40,000 mark for the first time since August, according to Coingecko data.